Shares of NICE Ltd (NASDAQ: NICE) surged 9.30% in intraday trading on Thursday, following the release of impressive third-quarter 2025 financial results and an upward revision of its full-year guidance. The Israeli cloud-based software provider's performance was largely driven by its AI-first strategy and strong demand for its cloud services.
NICE reported Q3 adjusted earnings of $3.18 per share, meeting analyst expectations and marking a 10.42% increase from the same period last year. The company's revenue for the quarter reached $732 million, slightly beating the consensus estimate and representing a 6.09% year-over-year growth. Notably, cloud revenue grew by an impressive 13% compared to the previous year, reaching $562.9 million, fueled by strong momentum in the company's CX AI and Self-Service business.
CEO Scott Russell attributed the strong performance to the company's AI-first strategy and outstanding go-to-market execution. "Our AI momentum continues to accelerate, with sustained organic performance amplified by the integration of Cognigy," Russell stated. The company's focus on AI is evident, with AI capabilities now included in every new seven-figure CX deal, expanding its enterprise-grade solutions.
In light of its robust performance, NICE has raised its full-year 2025 revenue guidance to between $2.932 billion and $2.946 billion, up from the previous range of $2.92 billion to $2.94 billion. The company also updated its full-year EPS guidance to $12.18-$12.32. This upward revision signals confidence in the company's growth trajectory and its ability to capitalize on the increasing demand for AI-driven customer experience solutions.
Analysts remain bullish on NICE Ltd, with the current average rating on the shares being "buy". Wall Street's median 12-month price target for the company stands at $190.00, representing a potential upside of about 34.6% from its recent closing price. The stock's strong performance and positive outlook have contributed to its attractiveness among investors, positioning NICE Ltd as a notable player in the AI-driven software solutions market.